The Reagan administration's experiment with supply-side economics produced a historic period of economic expansion that was accompanied by:
a. falling real interest rates.
b. high unemployment rates.
c. a dramatic increase in the federal government's budget deficit.
d. a reduction in the U.S. trade deficit.
e. All of the above.
c. a dramatic increase in the federal government's budget deficit.
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Who among the following is considered to be in the labor force?
A) retirees B) full-time students C) discouraged workers D) unemployed workers
If inflationary expectations are quite sluggish (that is, they do not adapt quickly), then the short-run Phillips curve will
a. be vertical. b. be horizontal. c. slope downward. d. slope upward.
By specializing in the production of particular goods in which it has a comparative advantage, a nation is:
A) less likely to make efficient use of available resources. B) less likely to engage in international trade. C) able to become self-sufficient. D) able to operate efficiently.
In the 1990s, inflation in many Latin American countries fell to about 10 to 15 percent per year, compared to previous rates of up to 1,000 percent a year in the 1980s. You would expect that as this occurred, the value of many Latin American currencies would:
A. have fallen more rapidly. B. not be affected. C. have fallen less rapidly. D. move unpredictably.